By AHAD WASEEM Published: SEPTEMBER 19, 2024 11:03Updated: SEPTEMBER 19, 2024 11:04(photo credit: PR)
Our 2024 FreeTaxUSA review reveals if it's the best tax software for you. Get the lowdown on features, pricing, and who it's perfect for.
This option suits your needs if you’re working with a limited budget and searching for tax software. FreeTaxUSA is an online platform designed for tax preparation, allowing users to prepare, print, and electronically file their taxes at no cost.
This holds specifically for filing your federal income tax return. The software is dependable regarding online tax preparation, offering the additional benefit of a minimal fee for state returns.
We’ll now discuss our experience using FreeTaxUSA. By the end of this review, you will clearly understand whether this software meets your specific tax filing requirements.
FreeTaxUSAoffers a tax software solution that enables individuals to file their federal and state tax returns easily. This powerful tool streamlines the process of online tax filing, eliminating the challenges faced by small and midsize businesses in managing their taxes.
Notably, FreeTaxUSA stands out for its highly affordable pricing plans compared to other tax software options. The platform provides a 30-day free trial period and a free version, albeit with limited functionality.
However, opting for the Deluxe version comes at a lower cost and grants users access to all the features that aren’t available on the free version.
FreeTaxUSA has numerous features designed to simplify various aspects of tax filing, including reviewing and modifying one's return. With this comprehensive suite of tools, navigating through the intricacies of tax season becomes much more manageable.
FreeTaxUSApresents a straightforward solution for taxpayers with uncomplicated returns who don’t require state filing. Similarly, it's an excellent choice for individuals with multiple 1099 forms, unemployment income, or dependents. Advertisement
These tax scenarios might necessitate upgrading to a paid tier on platforms such as TurboTax, H&R Block, or TaxSlayer.
(credit: PR)
Taxpayers who have received long-term care or death benefits, typically from insurance companies or the government, should also consider FreeTaxUSA, as it supports Form 1099-LTC, a feature not commonly found in comparable free tax software.
Individuals who have earned substantial income in foreign countries can benefit from FreeTaxUSA's inclusion of Form 1116 for claiming the foreign tax credit, another feature typically absent in free tax software.
For self-employed individuals seeking a cost-effective method to file taxes, FreeTaxUSA could be an ideal choice. Tax preparation tiers tailored for gig workers and freelancers often come with high costs. Although FreeTaxUSA doesn't support importing multiple 1099 forms, users can enter as many as needed, free of charge.
CashApp Taxes offers similar flexibility, albeit with minimal professional tax support. Freelancers seeking comprehensive assistance from professionals well-versed in self-employment taxes might find TaxSlayer more suitable, as it provides a range of services at a reasonable price.
However, FreeTaxUSA doesn’t cover some uncommon tax situations, including nonresident alien returns (Form 1040NR), at-risk limitations (Form 6198), and casualty or theft gain or loss from business activities or property donations exceeding $5,000.
If you prioritize features like free live chat support or a fully cost-free tax filing option, you may need something else than FreeTaxUSA.
Supports all major forms and schedules required for taxes
Boasts an excellent mobile website for convenient access
Affordable professional tax support services are provided
Federal e-filing is free, with inexpensive state filing options available
Cons
Inability to import most 1099s into the platform
Help pages tend to obscure Q&A pages, making navigation less intuitive
FreeTaxUSA Features – FreeTaxUSA Review
FreeTaxUSAoffers a range of advantages when preparing and electronically filing your income tax returns.
Even Complicated Tax Situations Are Covered By Both Editions
Tax preparation software programs require you to purchase a premium version to handle specific tax situations like self-employment, rental real estate, capital gains transactions, and various types of K-1-related income. However, FreeTaxUSA stands out by offering the ability to handle all these situations in their free and deluxe editions.
Unlike other major players in the tax software industry, FreeTaxUSA doesn't limit access to certain forms based on your chosen version. The upgraded version primarily provides additional support rather than additional forms. The free option allows you to file all the necessary tax forms for your situation without any extra cost or hassle.
Accuracy Guaranteed
Like other online tax preparation software programs, FreeTaxUSA guarantees accuracy for their tax calculations. They offer to cover any interest and penalties if you face an assessment from the IRS due to a calculation error in their software.
FreeTaxUSA Security
FreeTaxUSAoperates as an authorized IRS e-file provider, ensuring the encryption of personal information on their platform. They conduct security and privacy verifications through Truste, Norton, and SecurityMetrics.
Online Backup and Account Rollover
FreeTaxUSA offers online backup for completed returns, even with their free version. Moreover, using the software for two consecutive years automatically transfers last year's information to your current year's taxes.
Even if you didn’t file with FreeTaxUSA last year, you may still import some tax information from another service. This year, the software introduced a new feature allowing for PDF import of prior year tax returns.
I experimented with the PDF import option while assessing this year’s software. It proved straightforward and smoothly uploaded my personal information and previous employer details, saving time.
Inexpensive State Returns
(credit: PR)
Like many tax preparation software services, FreeTaxUSA charges extra for e-filing state tax returns. However, the cost of filing state returns with FreeTaxUSA is comparatively low at $14.99. This fee is based on your federal tax return information and additional details provided this year.
Interface and Ease of Use
FreeTaxUSA'sinterface may appear less elaborate than pricier software options. However, it encompasses fundamental features such as a refund tracker and tabs for different sections of your return.
Unlike some other software, FreeTaxUSA doesn't allow users to skip ahead. You can revisit previous sections to make changes or additions after entering information in a section.
While this restriction may not pose significant issues for those filing taxes at once, individuals preferring to input each form as received may find it less efficient with FreeTaxUSA. Nonetheless, it ensures all sections of taxes are addressed.
FreeTaxUSA presents its tax software in four distinct service levels: Basic, designed for straightforward tax returns; Advanced, tailored to homeowners and those with itemized deductions; Premium, explicitly catering to landlords and investors; and Self-Employed, ideal for freelancers, contractors, and gig workers.
However, unlike its top competitors in the market, FreeTaxUSA's plans include free federal returns across all tiers. This effectively undermines the purpose of having multiple service levels.
It’s worth noting that all plans use the same software. Once you prepare your taxes with FreeTaxUSA, there’s no further mention or differentiation between the available tiers.
How Does FreeTaxUSA Work?
FreeTaxUSAhas introduced a beta version of the W-2 form upload this year, enhancing the user experience by automating some data entry processes. However, manual input is still required for information; it doesn't automatically capture other tax forms.
Despite lacking the graphical interfaces of its pricier competitors and not providing direct recommendations for tax filing statuses, FreeTaxUSA compensates with its comprehensive and free integrated help features. These include contextual questions in its support center, offering valuable guidance without opening new tabs or windows.
The software follows a guided question-and-answer format that’s efficient and straightforward, guiding users through various sections of the tax return process but only allowing skipping ahead to different sections once they’re reached in the guided process.
While FreeTaxUSA lacks a dedicated mobile app, its mobile browser version is effective, allowing easy data syncing between devices and including a link to preview or download the 1040 form.
FreeTaxUSA is free for federal returns (hence its namesake) and charges $14.99 for state returns. The Deluxe version,priced at $7.99, adds advanced support. For $49.99, users can access pro-tax support.
Cash App Taxes have always been free for federal and state returns, but their support is minimal. FreeTaxUSA offers much deeper online guidance. Most tax software vendors provide free versions covering only basic tax situations.
Users sometimes have to pay over $100 for their federal return and more for state returns to report self-employment income and expenses. Considering the offerings, FreeTaxUSA charges comparatively low rates.
As an authorized IRS e-file provider, FreeTaxUSAclaims to meet or exceed the security requirements outlined by the IRS. The site employs SSL certificates to encrypt connections, ensuring the safety of sensitive information.
The company adheres to stringent data security standards to safeguard against the theft of payment information, with privacy practices reviewed annually. Multi-factor authentication (MFA) is supported.
How Does FreeTaxUSA Handle Self-Employment Income and Expenses?
As mentioned, FreeTaxUSA is one of two online tax prep apps allowing users to fill out a Schedule C form for free.
This is beneficial for sole proprietors such as Uber drivers and Etsy sellers who could save $100 or more compared to sites like TurboTaxand H&R Block, which charge extra for filing Schedule C. While those tax prep services offer more guidance for sole proprietors, FreeTaxUSA may suffice if users follow the site’s instructions carefully and use its help resources.
The Schedule C section of FreeTaxUSA initiates with a few preliminary questions and then presents fields and boxes for entering corresponding information from 1099-NEC and 1099-MISC forms. Users cannot upload copies of the forms for automatic data reading and entry as TurboTax offers.
Any unreported income (including 1099-K totals) is entered on another page. Users input expenses by category once all income is reported, such as office expenses, advertising, utilities, travel, and miscellaneous expenses. Additional pages collect information on vehicle costs, health insurance, home office expenses, and more.
If users still need to organize and store tax-deductible business costs throughout the year, they should anticipate a lengthy session.
After entering all tax-related income and expenses, FreeTaxUSAoffers to run the return through its Refund Maximizer, which seeks additional avenues for minimizing income tax obligations.
Like most other online tax services, the site conducts accuracy checks throughout the process and performs a final sweep after users complete their state returns. If users owe the IRS rather than receiving a refund, they have multiple payment options.
Payments can be made through FreeTaxUSA using a credit card or by setting up a direct withdrawal from a bank account. Alternatively, payments can be made directly to the IRS via the Direct Pay site or via credit/debit card or bank account.
If you’re still determining the legitimacy of FreeTaxUSAafter reviewing all the information, here are genuine customer reviews that share their experiences. FreeTaxUSA has an overall rating of 3.1 stars, with some customers highly satisfied and others expressing frustration regarding refund problems.
Intuit TurboTax is the top choice for small business online tax software due to its user-friendly interface, vast database of deductions and credits, and dedicated support for startups. Although it’s pricier than alternative tax software programs, it offers a seamless and inclusive solution for businesses of all sizes and industries.
For small business owners looking to leverage Intuit TurboTax, opting for either the TurboTax Self-Employed online package or the TurboTax Business application is advisable. These options cater specifically to the needs of self-employed individuals and businesses alike.
TaxSlayerstands out as a top choice for small business filers due to its ability to handle complex returns at an affordable price compared to other major players. It provides a priority phone line, excellent customer service, and a user-friendly platform for tax filing.
Moreover, TaxSlayer offers the flexibility to customize your assistance level. The guided interview feature takes you through a step-by-step process, ensuring quick and accurate filing.
Alternatively, if you're confident in navigating tax forms independently, you can directly access specific forms to input your income and deductions. This option is particularly advantageous if you have prior knowledge of what information is required.
With TaxSlayer's comprehensive features and intuitive interface, small business filers can manage their taxes efficiently while receiving reliable support.
Although H&R Block is widely known for its physical offices across the United States, it also provides online filing options and downloadable software. Opting for an online package allows users to conveniently work on their taxes using the mobile app available for both Android and iOS devices.
H&R Block caters to a broad range of tax filers by offering a modern interface that’s user-friendly and intuitive. Like other tax preparation services, the platform guides users through a series of inquiries about their household income while highlighting potential deductions and tax credits that may apply.
Below are several frequently asked questions regarding FreeTaxUSA:
Can FreeTaxUSA Online Help Me File My Crypto Investments?
If you have only traded a small number of tokens, FreeTaxUSA might be sufficient to file your returns. You will need to find out the US Dollar value of each trade, but you can enter the information into the platform.
However, if you’re an active cryptocurrency trader, it would be advisable to explore other options. It’s likely inefficient or worthwhile to input dozens of trades into FreeTaxUSA manually.
Do I Have to Pay More for a Self-Employed Tier for My Side Hustle?
FreeTaxUSA applies a uniform charge to all users, regardless of the intricacy of their filing circumstances. The federal filing service is consistently free, while each state's filing costs $14.99.
Is FreeTaxUSA Legitimate?
Indeed, this tax software preparation company has gained significant popularity and has been operating successfully for two decades since its establishment in 2001.
FreeTaxUSAoffers a convenient and predominantly free method for electronically filing your taxes. The basic version is sufficient if you have a decent grasp of bookkeeping and have maintained well-organized paperwork. However, the Deluxe edition provides additional support if needed.
While there are some limitations, as previously mentioned, FreeTaxUSA is an ideal choice for those who want to minimize costs while still reaching the point of filing their taxes accurately.
JPost oversees the native, paid, and sponsored content on this website and ensures quality, relevance, and value for our readers. However, articles attributed to this byline are provided by paying advertisers, and the opinions expressed do not necessarily reflect the views of JPost.The sponsor holds full responsibility for the content and retains the copyright of the material. For specific service-related advice or decisions, it is recommended to consult with a qualified professional.Related Tagsreviewtaxusa
if(catID != 151){
var cont = `Take Israel home with the new Jerusalem Post Store Shop now >> `;
document.getElementById("linkPremium").innerHTML = cont;
var divWithLink = document.getElementById("premium-link");
if (divWithLink !== null && divWithLink !== 'undefined') {
divWithLink.style.border = "solid 1px #cb0f3e";
divWithLink.style.textAlign = "center";
divWithLink.style.marginBottom = "15px";
divWithLink.style.marginTop = "15px";
divWithLink.style.width = "100%";
divWithLink.style.backgroundColor = "#122952";
divWithLink.style.color = "#ffffff";
divWithLink.style.lineHeight = "1.5";
}
}
(function (v, i) {
});
